Hyperoptic has completed a debt raise of £250 million to extend its full fibre optic network to 50 towns and cities across the UK.
The financing comes from eight international banks and will allow the company to meet its target by 2019.
The business is already powering almost 500,000 homes and businesses with its 1Gbps service, and this latest investment will fund its mission of reaching two million homes by 2022.
It plans to then further expand the platform to five million by 2025.
“Such large financial backing from prestigious investors is testament to the strength of Hyperoptic’s business model and proven track record for delivery,” said Hyperoptic chief executive Dana Tobak.
“All our teams are forging ahead with one rally cry: Let’s Gigabit Britain.”
Chairman Boris Ivanovic added: “Hyperoptic has the vision, determination and means to lead the rollout of gigabit connectivity across this country, and smash the digital divide once and for all.”
Hyperoptic said the investment comes at a time when only 3 per cent of UK premises can access the gold standard of fibre-to-the-premises (FTTP) broadband.
The government’s target is for 15 million premises to have access to full fibre broadband by 2025.
In the past year, Hyperoptic has expanded its network to 10 additional UK towns and cities, and signed contracts in a further 14. The network expansion is set to create an additional 1,500 jobs, more than doubling its current 600 staff across five offices.
Following this latest funding, the company plans to recruit at least a further 400 employees by the end of this year and another 1,000 by the end of 2019.
Hyperoptic was advised by LionTree Advisors and the deal was co-led by BNP Paribas and ING, with a funding club of eight Tier 1 banks including the co-leads, Royal Bank of Scotland, Societe General, Royal Bank of Canada, HSH Nordbank, NIBC, and Barclays.